Information Technology Assignment: Security Breaches at Commonwealth Bank
Task: You are to research a real life business example of your choice and the impact of IT on that business. The purpose of this information technology assignment is to find recent news that involves information security breaches, analyze the chosen news and produce a report.
Information technology in the banking sector is beneficial because it provides advanced services to the customers. It also gives secure transactions and an affordable manner of sustainability in the banking sector. IT also increases the competitive advantages in the banking sector. In the business report, the Commonwealth Bank of Australia has been chosen. The report will discuss the information security breaches and also how the IT has implemented in the bank.
2. Overview of the Chosen Industry
In the business report, the Commonwealth Bank of Australia (CBA) or The Commonwealth Bank has been chosen. Various financial services including retails, institutional banking and business are provided by The Commonwealth Bank . The banks offer net banking services and also offer services like transfer funds. Customers can also manage and save their money through net banking.
3. Importance of Information Technologies
The Commonwealth Bank with the help of advanced IT technologies can also improve the quality of services. It also assists in controlling the risks and helps to improve the financial intermediaries of the bank. CBA needs advanced IT technologies that will prevent data breaching in the sector. The bank also offers another service through an instant payment mobile application named BeemIt. Through information technologies, competitive advantages can also be developed in the bank . Implementing IT can also help to develop the process of payment transfer in the bank.
4. The requirement to Apply IT
In the Commonwealth Bank of Australia, implementing IT or new technology can affect the cost of the bank. The main costs that have to be considered before implanting the Information technology are:
- Physical Hardware
The cost includes the initial hardware pricing for computers, laptops, and servers.
The main cost for purchasing the software includes the licenses and subscription. The cost of the software installation depends on how the users are involved. The cost also varies if the cloud-based system is going to be implementing or not.
- Operational Cost
The operational cost includes efficiency, enables integration, and improves better decision making.
- Education and Training
Implementing the new technologies can give solutions to the bank, but it also needs some training for the employees. It will help the employees to know about the new technology.
As new technologies have evolved, they also need up-gradation and maintenance. It will also affect the cost of implementing IT.
Purchasing the extended warranty can also include the total costing of the implementation.
Implementing the IT in the Commonwealth Bank can also increase the service efficiency as it will improve the productivity of the bank. Through mobile banking customers can be satisfied . IT can also improve the mobile banking service.
d. Equipment and Installation
To prevent further data breaches, the Commonwealth Bank should implement cloud computing, where the data can be secured safely . As the bank is dealing with huge data of the customers, cloud computing can help to analyze the data effectively.
Implementing the new technology can reduce the workload of employees. However, without proper training, it will not be affected. Thus, the organization should conduct training about the usage of information technology.
5. Usage of IT in the Banking Industry
a. Internal Usage
Information Technology or IT is used in the banking sectors to enhance communication between the employees and the customers. It allows more flexibility in the banking structure, encouraging and increasing the skills and creativity of the employees in the Commonwealth Bank. The automated passbook printing, deposits help the Commonwealth Bank to free its employees and enable them to concentrate more on the customers’ needs . E-banking helps to reduce huge paper works and account registers.
b. External Usage
The use of Information Technology in the Commonwealth Bank helps the suppliers as well as the customers in various ways. The implementation of mobile banking and internet banking in the Commonwealth Bank helps the customer to access their account from home. The use of plastic money is an important area of technology in the banking sector and customers can save time by using plastic money . The suppliers can also develop the relationship with the banking authority of Commonwealth Bank through the use of IT.
6. Advantages of Using IT in Banking Industry
Information Technology is an input for each activity in the banking sectors, without it, the bank cannot operate efficiently. The Commonwealth Bank should apply information technology to fulfill its goals and objectives. It helps in reducing time management, improving customer satisfaction, and increases the revenues of the bank.
- Excellent operation management: the use of information technology helps in effective operation management in the Commonwealth Bank in the least time and with few errors.
- Supply Chain Management: the information technology has automated the entire system of the bank to track the inventory and information within the Commonwealth Bank.
- Customer Satisfaction: the use of internet banking, ATM, mobile banking reduces customers’ time and it helps the Commonwealth Bank to build an effective and good relationship with its customers as well as increasing profitability by reducing service costs.
- Remote Banking: remote banking in the Commonwealth Bank connects the respective branch via modem and it enables the customers to question regarding their accounts online.
- Flexibility: the use of IT in the Commonwealth Bank has made the entire banking system more effective, adding flexibility to the banking process.
7. Risks of Using IT in the Banking Industry
Information technology provides numerous benefits as well as it has some drawbacks. The security risk will fall impact on the Commonwealth Bank.Major risks that arise from the data breaches are, the attackers can be tempered with the system. It can also cause threats to the financial service of the bank . Weak technologies can also increase the risk oflosing sensitive data.
b. Privacy and Confidentiality
In cloud computing technologies, the data has been accessed through the internet. Confidentiality refers to the prevention of illegal access to the data. That's why the organization needs to maintain confidentiality . Confidentiality preserves through encryption.
8. Maintaining and Monitoring IT
The Commonwealth Bank needs to improve its overall security system and upgrade the structure through the use of information technology in the bank. However, the bank should not only implement the IT but also maintain and monitor it properly to serve the customers effectively. The bank should regularly update the system, improve the security system of the website of the bank as well as develop more features on the banking application to satisfy the customers . The authority of the Commonwealth Bank should regularly monitor all the machines like passbook printing machines, cash deposit machines, and ATMs for better services. It should regularly update and monitor the security system to stop data breaching.
The use of IT plays a vital role in the banking sector as it adds more flexibility to the entire system. The Commonwealth Bank has implemented IT to develop the services and satisfy its customers. The use of IT helps to assess the risks in data breaching and hacking within the sector.
- The Commonwealth Bank of Australia should use IT in the bank to increase it security as well as to fulfill customers’ needs.
- it should improve its digital UX to improve the simplicity of existing digital system.
- The Commonwealth Bank of Australia should regularly update the entire banking system to increase the security.
- The banking authority should use strong passwords for avoiding data breaching and hacking.
- The bank should update more security features to its net-banking and mobile banking system and should add finger print or face lock facilities of the customers for logging in into the website.
- The Commonwealth Bank of Australia should implement effective policies in the bank regarding the use of Information Technology and increase security in the bank . All the system should be encrypted for increasing security.?
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